While it has begun to cross the Rubicon toward a resolution of this crisis, it has still not reached the other side as far as advocates for for-profit college students are concerned. They've applauded ED’s attempt, but say it's not enough.
Maggie Thomson, campaign manager for Higher Ed, Not Debt, said that because the for-profit college was perpetrating a fraud, total loan forgiveness is a no-brainer.
”Corinthian Colleges engaged in systematic fraud that left students with crippling levels of debt and poor job prospects,” Thomson said. “Corinthian students deserve a full and automatic refund, the Department’s plan as outlined offers relief for only a small group of students. We hope this action is just a first step as it is insufficient to address the true scope of the harm Corinthian caused students.”
"We encourage the Department of Education to further investigate and publicize additional findings of fraud at Corinthian campuses to ensure all students deceived by Corinthian have access to a refund," she added.
Meanwhile, the Debt Collective has added to the ranks of Corinthian loan refuseniks. In a statement, ED said that it is "helping students who believe they were victims of fraud, regardless of whether their school closed." That would expand write-off eligibility to other schools.
A Corinthian write-off that covered all borrowers of federal loans would be expensive and unprecedented. The price tag would be about $3.5 billion if every Corinthian student who took out a loan in the last five years was included.